Tuesday, October 5, 2010

Societe Generale trader Kerviel guilty over scandal

Former Societe Generale trader Jerome Kerviel has been convicted for his role in a scandal that cost the bank almost 5bn euros ($7bn; £4bn).

He must serve three years in jail with a further two years suspended sentence.

Kerviel was found guilty of forgery, unauthorised computer use and breach of trust.

He stood trial earlier this year, over charges that he bet 50bn euros of SocGen's money without the bank's knowledge.

"Kerviel knowingly went beyond his remit as a trader," presiding judge Dominique Pauthe told the court.

Kerviel's defence was the bank knew about the risk-taking and was content while he was making profit.
'Catastrophe'

The trial saw Kerviel's former bosses and colleagues line up to testify against him.

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